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| 1 | + | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 439Introduced by Senator ArchuletaFebruary 16, 2021 An act to add Section 400.4 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 439, as introduced, Archuleta. Renewable hydrogen.Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen.This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable hydrogen project, as defined, or multiple projects, in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles to achieve described purposes. If a renewable hydrogen project is identified and proposed, the bill would authorize the gas corporation to file an application with the PUC for approval to undertake the project or projects. The bill would require the PUC to approve, or modify and approve, a project or projects and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) For purposes of this section, the following terms have the following meanings:(1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.(2) Renewable hydrogen means hydrogen derived from one of the following:(A) Electrolysis of water or aqueous solutions using renewable source electricity.(B) Catalytic cracking or steam methane reforming of biomethane.(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).(3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 439Introduced by Senator ArchuletaFebruary 16, 2021 An act to add Section 400.4 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 439, as introduced, Archuleta. Renewable hydrogen.Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen.This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable hydrogen project, as defined, or multiple projects, in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles to achieve described purposes. If a renewable hydrogen project is identified and proposed, the bill would authorize the gas corporation to file an application with the PUC for approval to undertake the project or projects. The bill would require the PUC to approve, or modify and approve, a project or projects and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | Amended IN Senate March 05, 2021 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate March 05, 2021 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 439 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator ArchuletaFebruary 16, 2021 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Senator Archuleta | |
| 18 | 18 | February 16, 2021 | |
| 19 | 19 | ||
| 20 | 20 | An act to add Section 400.4 to the Public Utilities Code, relating to energy. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | SB 439, as | |
| 26 | + | SB 439, as introduced, Archuleta. Renewable hydrogen. | |
| 27 | 27 | ||
| 28 | - | Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen.This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable | |
| 28 | + | Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen.This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable hydrogen project, as defined, or multiple projects, in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles to achieve described purposes. If a renewable hydrogen project is identified and proposed, the bill would authorize the gas corporation to file an application with the PUC for approval to undertake the project or projects. The bill would require the PUC to approve, or modify and approve, a project or projects and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 29 | 29 | ||
| 30 | 30 | Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen. | |
| 31 | 31 | ||
| 32 | - | This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable | |
| 32 | + | This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable hydrogen project, as defined, or multiple projects, in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles to achieve described purposes. If a renewable hydrogen project is identified and proposed, the bill would authorize the gas corporation to file an application with the PUC for approval to undertake the project or projects. The bill would require the PUC to approve, or modify and approve, a project or projects and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 33 | 33 | ||
| 34 | 34 | ## Digest Key | |
| 35 | 35 | ||
| 36 | 36 | ## Bill Text | |
| 37 | 37 | ||
| 38 | - | The people of the State of California do enact as follows:SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) For purposes of this section, the following terms have the following meanings:(1) | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) For purposes of this section, the following terms have the following meanings:(1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.(2) Renewable hydrogen means hydrogen derived from one of the following:(A) Electrolysis of water or aqueous solutions using renewable source electricity.(B) Catalytic cracking or steam methane reforming of biomethane.(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).(3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 39 | 39 | ||
| 40 | 40 | The people of the State of California do enact as follows: | |
| 41 | 41 | ||
| 42 | 42 | ## The people of the State of California do enact as follows: | |
| 43 | 43 | ||
| 44 | - | SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) For purposes of this section, the following terms have the following meanings:(1) | |
| 44 | + | SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) For purposes of this section, the following terms have the following meanings:(1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.(2) Renewable hydrogen means hydrogen derived from one of the following:(A) Electrolysis of water or aqueous solutions using renewable source electricity.(B) Catalytic cracking or steam methane reforming of biomethane.(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).(3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 45 | 45 | ||
| 46 | 46 | SECTION 1. Section 400.4 is added to the Public Utilities Code, to read: | |
| 47 | 47 | ||
| 48 | 48 | ### SECTION 1. | |
| 49 | 49 | ||
| 50 | - | 400.4. (a) For purposes of this section, the following terms have the following meanings:(1) | |
| 50 | + | 400.4. (a) For purposes of this section, the following terms have the following meanings:(1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.(2) Renewable hydrogen means hydrogen derived from one of the following:(A) Electrolysis of water or aqueous solutions using renewable source electricity.(B) Catalytic cracking or steam methane reforming of biomethane.(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).(3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 51 | 51 | ||
| 52 | - | 400.4. (a) For purposes of this section, the following terms have the following meanings:(1) | |
| 52 | + | 400.4. (a) For purposes of this section, the following terms have the following meanings:(1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.(2) Renewable hydrogen means hydrogen derived from one of the following:(A) Electrolysis of water or aqueous solutions using renewable source electricity.(B) Catalytic cracking or steam methane reforming of biomethane.(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).(3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 53 | 53 | ||
| 54 | - | 400.4. (a) For purposes of this section, the following terms have the following meanings:(1) | |
| 54 | + | 400.4. (a) For purposes of this section, the following terms have the following meanings:(1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.(2) Renewable hydrogen means hydrogen derived from one of the following:(A) Electrolysis of water or aqueous solutions using renewable source electricity.(B) Catalytic cracking or steam methane reforming of biomethane.(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).(3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 55 | 55 | ||
| 56 | 56 | ||
| 57 | 57 | ||
| 58 | 58 | 400.4. (a) For purposes of this section, the following terms have the following meanings: | |
| 59 | 59 | ||
| 60 | - | (1) Green hydrogen means hydrogen that is not produced from fossil fuel feedstock sources. Eligible production pathways include, but are not limited to: | |
| 61 | - | ||
| 62 | - | (A) Green electrolytic hydrogen as defined in Section 400.2. | |
| 63 | - | ||
| 64 | - | (B) Steam methane reforming, autothermal reforming, methane pyrolysis, and other pathways that convert biogas, biomethane, ethanol, and other renewable gases and liquids to hydrogen. | |
| 65 | - | ||
| 66 | - | (C) Gasification, pyrolysis, thermochemical conversion, and other pathways that convert biomass, including the organic portion of municipal solid waste and organic waste feedstocks listed in subdivision (b) of Section 650, to hydrogen. | |
| 67 | - | ||
| 68 | - | (D) Waste or byproduct hydrogen recovered from nonfossil fuel industrial processes. | |
| 69 | - | ||
| 70 | - | (E) Photochemical or photobiological water splitting. | |
| 71 | - | ||
| 72 | - | (1) | |
| 73 | - | ||
| 74 | - | ||
| 75 | - | ||
| 76 | - | (F) Hydrogen produced from other methods or other feedstocks that do not contribute to emissions of greenhouse gases, as determined by the State Air Resources Board. | |
| 77 | - | ||
| 78 | - | (2) Project means a renewable green hydrogen project or multiple renewable green hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines. | |
| 60 | + | (1) Project means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines. | |
| 79 | 61 | ||
| 80 | 62 | (2) Renewable hydrogen means hydrogen derived from one of the following: | |
| 81 | 63 | ||
| 82 | - | ||
| 83 | - | ||
| 84 | 64 | (A) Electrolysis of water or aqueous solutions using renewable source electricity. | |
| 85 | - | ||
| 86 | - | ||
| 87 | 65 | ||
| 88 | 66 | (B) Catalytic cracking or steam methane reforming of biomethane. | |
| 89 | 67 | ||
| 90 | - | ||
| 91 | - | ||
| 92 | 68 | (C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW). | |
| 93 | - | ||
| 94 | - | ||
| 95 | 69 | ||
| 96 | 70 | (3) Renewable source electricity means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)). | |
| 97 | 71 | ||
| 72 | + | (b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record. | |
| 98 | 73 | ||
| 74 | + | (c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project. | |
| 99 | 75 | ||
| 100 | - | (b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable green hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record. | |
| 101 | - | ||
| 102 | - | (c) If a renewable green hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project. | |
| 103 | - | ||
| 104 | - | (d) The commission shall approve, or modify and approve, a project and associated investments in renewable green hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. | |
| 76 | + | (d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism. |